Entered into Joint Development Agreement to Advance Next-generation Separation Technology
Re-awarded DLA contract valued at
Debt-free with
Maintaining Full Year Gross Margin Target
THIRD-QUARTER 2026 FINANCIAL SUMMARY:
- Revenue of
$59.4 million - Sales Volume: (9%)
- Pricing: (17%)
- Gross margin of 25%
- Net income of
$2.0 million , or diluted earnings per share of$0.05
“Third-quarter revenue reflected continued softness in HFC market pricing and lower sales volume. In this market landscape, we prioritized profitable sales and cost containment, enabling us to achieve gross margin of 25%, roughly consistent with gross margin in the second quarter of 2026. Despite the challenging pricing environment, we were pleased to achieve volume growth of 9% in the nine-month selling season, reflecting our leadership position and the strength of our customer relationships.
“We further strengthened our debt-free balance sheet during the quarter, ending with
Three Months Results
For the quarter ended
Revenue was
Gross margin was 25%, compared with 32% in the third quarter of 2025 primarily reflecting 17% lower refrigerant market pricing following the elevated pricing environment in the prior-year quarter.
Selling, general and administrative expenses were
Net income was
Nine Months Results
For the nine months ended
Revenue was
Gross margin was 24%, compared with 29% in the first nine months of 2025. The decline in gross margin was two-fold, reflecting lower refrigerant market pricing related to the previously noted increase in refrigerant prices in the 2025 period and increased operating costs, primarily fuel costs.
Selling, general and administrative expenses were
Net income was
At
Full Year Gross Margin Guidance
The Company continues to expect full-year 2026 gross margin in the low-to-mid-twenty percent range, consistent with its previously announced target.
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About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company's products and services are primarily used in aftermarket service of commercial air conditioning, industrial processing and refrigeration systems. These include refrigerant and industrial gas sales, refrigerant management services consisting primarily of recovery and reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s Chiller Chemistry® and Chill Smart® services are predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under its existing credit facility, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company's 10-K for the year ended December 31, 2025 and other subsequent filings with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
| Investor Relations Contact: IMS Investor Relations (203) 972-9200 jnesbett@imsinvestorrelations.com | Company Contact: (845) 735-6000 bbertaux@hudsontech.com |
| Hudson Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (Amounts in thousands, except for share and par value amounts) | |||||||
| 2026 | 2025 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 35,262 | $ | 39,456 | |||
| Trade accounts receivable – net of allowance for credit losses of | 29,786 | 17,098 | |||||
| Inventories | 131,513 | 135,923 | |||||
| Income tax receivable | 5,475 | 5,916 | |||||
| Prepaid expenses and other current assets | 15,642 | 12,445 | |||||
| Total current assets | 217,678 | 210,838 | |||||
| Property, plant and equipment, less accumulated depreciation | 21,845 | 23,623 | |||||
| 65,282 | 65,282 | ||||||
| Intangible assets, less accumulated amortization | 8,843 | 11,294 | |||||
| Right of use assets | 4,206 | 5,290 | |||||
| Other assets | 1,972 | 2,321 | |||||
| Total Assets | $ | 319,826 | $ | 318,648 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 18,137 | $ | 21,112 | |||
| Accrued expenses and other current liabilities | 41,425 | 38,772 | |||||
| Accrued payroll | 3,567 | 4,712 | |||||
| Other short-term liabilities | 1,000 | — | |||||
| Total current liabilities | 64,129 | 64,596 | |||||
| Deferred tax liability | 6,696 | 4,034 | |||||
| Long-term lease liabilities | 2,351 | 3,233 | |||||
| Long-term severance payable | 326 | 1,595 | |||||
| Other long-term liabilities | 800 | 1,800 | |||||
| Total Liabilities | 74,302 | 75,258 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | |||||
| Common stock, | 421 | 416 | |||||
| Additional paid-in capital | 86,504 | 91,692 | |||||
| Retained earnings | 158,599 | 151,282 | |||||
| Total Stockholders’ Equity | 245,524 | 243,390 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 319,826 | $ | 318,648 | |||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) (Amounts in thousands, except for share and per share amounts) | |||||||||||||||
| Three months | Nine months | ||||||||||||||
| ended | ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues | $ | 59,422 | $ | 74,012 | $ | 197,918 | $ | 202,204 | |||||||
| Cost of sales | 44,622 | 50,338 | 150,580 | 143,651 | |||||||||||
| Gross profit | 14,800 | 23,674 | 47,338 | 58,553 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 10,809 | 8,883 | 32,774 | 26,318 | |||||||||||
| Amortization | 740 | 823 | 2,451 | 2,468 | |||||||||||
| Total operating expenses | 11,549 | 9,706 | 35,225 | 28,786 | |||||||||||
| Operating income | 3,251 | 13,968 | 12,113 | 29,767 | |||||||||||
| Other (income) expense: | |||||||||||||||
| Interest expense (income) | (36 | ) | (792 | ) | (216 | ) | (2,019 | ) | |||||||
| Other expense (income) | 71 | (1,600 | ) | 71 | (1,600 | ) | |||||||||
| Total other (income) expense | 35 | (2,392 | ) | (145 | ) | (3,619 | ) | ||||||||
| Income before income taxes | 3,216 | 16,360 | 12,258 | 33,386 | |||||||||||
| Income tax expense | 1,176 | 3,986 | 4,941 | 8,086 | |||||||||||
| Net income | $ | 2,040 | $ | 12,374 | $ | 7,317 | $ | 25,300 | |||||||
| Net income per common share – Basic | $ | 0.05 | $ | 0.28 | $ | 0.17 | $ | 0.58 | |||||||
| Net income per common share – Diluted | $ | 0.05 | $ | 0.27 | $ | 0.17 | $ | 0.56 | |||||||
| Weighted average number of shares outstanding – Basic | 42,088,547 | 43,652,094 | 42,159,455 | 43,778,866 | |||||||||||
| Weighted average number of shares outstanding – Diluted | 42,194,417 | 45,245,197 | 42,313,493 | 45,329,681 | |||||||||||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (Amounts in thousands) | |||||||
| Nine months | |||||||
| ended | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 7,317 | $ | 25,300 | |||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||
| Depreciation | 2,632 | 2,105 | |||||
| Amortization of intangible assets | 2,451 | 2,468 | |||||
| Gain on measurement of earn-out liability | — | (1,600 | ) | ||||
| Lower of cost or net realizable value inventory adjustment | (2,497 | ) | 211 | ||||
| Allowance for credit losses | 79 | 300 | |||||
| Share based compensation | 1,079 | 631 | |||||
| Amortization of deferred finance costs | 170 | 170 | |||||
| Deferred tax expense | 2,662 | 1,460 | |||||
| Changes in assets and liabilities: | |||||||
| Trade accounts receivable | (12,767 | ) | (12,038 | ) | |||
| Inventories | 8,031 | (1,378 | ) | ||||
| Prepaid and other assets | (3,019 | ) | (8,595 | ) | |||
| Income taxes receivable | 441 | 2,000 | |||||
| Accounts payable and accrued expenses | (2,315 | ) | 18,347 | ||||
| Cash provided by operating activities | 4,264 | 29,381 | |||||
| Cash flows from investing activities: | |||||||
| Additions to property, plant, and equipment | (2,125 | ) | (3,942 | ) | |||
| Disposal write-off of fixed assets | (71 | ) | — | ||||
| Cash used in investing activities | (2,196 | ) | (3,942 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from issuance of common stock | — | 45 | |||||
| Repurchase of common stock | (2,491 | ) | (5,820 | ) | |||
| Excise tax on repurchase of common stock | (3,771 | ) | (117 | ) | |||
| Cash used in financing activities | (6,262 | ) | (5,892 | ) | |||
| Increase (decrease) in cash and cash equivalents | (4,194 | ) | 19,547 | ||||
| Cash and cash equivalents at beginning of period | 39,456 | 70,134 | |||||
| Cash and cash equivalents at end of period | $ | 35,262 | $ | 89,681 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | $ | 285 | $ | 431 | |||
| Cash paid for income taxes – net | $ | 1,838 | $ | 4,627 | |||
| Property and equipment included in accrued expenses and other current liabilities | $ | 50 | $ | 3 | |||
